Bangkok: The Minister of Commerce has unveiled a comprehensive plan to transition Thailand’s economy from its current “trap” into a value-based economy, focusing on grassroots development, market expansion, and cost-of-living reduction through three strategic approaches and seven targeted policies.
According to Thai News Agency, Ms. Suphajee Suthumpun, the Minister of Commerce, stated the urgency for the Thai economy to adapt swiftly to escape the “development trap” amid global economic shifts. She emphasized the need to steer the country towards a Value-Based Economy through strategies that enhance agricultural income, create new markets, and alleviate living costs for the population.
The Minister highlighted four global trends impacting the economy: de-globalization, de-carbonization, digitalization, and demographic shifts. These trends necessitate Thailand’s adaptation to maintain economic stability and growth. Despite an average growth of approximately 5% over the past two decades, recent projections estimate a decline to 1.8-2.3% by 2025, with inflation remaining negative for six months consecutively, indicating potential deflation risks if domestic demand is not stimulated promptly.
The Ministry’s outlined strategies aim to address these challenges:
Strategy 1: Increase Income in the Agricultural Sector
– Thailand aims to manage its rice stock efficiently, with 25.8 million tons available, including 6.8 million tons of jasmine rice.
– Initiatives like the “Green Flag” project seek to reduce farmer costs, such as fertilizer prices, while maintaining supply-demand balance to stabilize rice prices.
Strategy 2: Create and Expand New Markets
– With 14 Free Trade Agreements (FTAs) across 18 countries, the Ministry is working on an FTA with the EFTA group and accelerating negotiations with South Korea, aiming for results by next year.
– A Trade Mission is planned to tap into high-potential markets, including India, Saudi Arabia, and regions like the Middle East and Latin America.
Strategy 3: Reduce Cost of Living
– Expansion of the “Fah Blue Flag” project nationwide to mitigate border situation impacts.
– Collaboration with the Private Hospital Association to enhance drug price transparency, potentially reducing medicine-related expenses by over 30 billion baht annually.
Additional initiatives include partnering with Thailand Post to promote local products as year-end gifts, enhancing local economies through innovative packaging and marketing strategies.
Ms. Suphajee emphasized Thailand’s strategic location as a regional production and distribution hub, strengthened by its FTA network, which positions the country as an attractive destination for international trade and investment. The Ministry is also leveraging digital technology and AI to streamline government services, fostering innovation and economic value.
“We must restructure our economy to overcome the middle-income trap and progress towards a value-based innovation-driven economy. Achieving success hinges on government confidence-building, private sector opportunities, and genuine public benefit,” Ms. Suphajee concluded.